Consumer Education and Research Society (CERS) on Friday objected to
Gujarat State Electricity Corporation Ltd (GSECL) demanding recovery of
Rs 169 crore from electricity consumers in the state due to receipt of
“inferior” quality of coal from Coal India Ltd (CIL).
CERS has urged GSECL, which had demanded this sum in its recent tariff
petitions, to recover Rs 169 crore from CIL and said that consumers
should not be burdened due to the “inefficiency and lethargic approach
of the electricity company.”
The consumer body also drew the attention of Competition Commission of
India (CCI) and the Union Ministry of Power towards CIL’s adoption of
“unfair trade practices thereby misusing its dominant position as
monopoly” in supply of coal to power plants. The increase in fuel cost
is recovered by electricity companies through GERC-approved formula
under Fuel Price & Power Purchase Adjustment charges (FPPPA).
According to CERS, electricity companies in India are receiving
“inferior” quality E-grade coal with heating value of 2400-2800 kcal/kg,
which increases coal consumption by 25% and increased cost per unit
generation, thus putting additional burden on electricity consumers.
In a statement here, CERS said that National Thermal Power Corporation
(NTPC) received 55 million tonnes of stones and rocks in 2011-12 along
with coal, which has put a burden of Rs. 11,160 crore on NTPC which
would be recovered by it from those electricity companies which purchase
power from NTPC.
Thus, it will be directly collected from electricity consumers of India
through increase in fuel cost vide FPPPA charges. Here also, CERS
maintained, CIL has “misused its dominant status” in supply of coal to
generating companies of India. Similarly all generation companies
received 25-35 per cent waste material in the form of stones and rocks,
instead of coal.
In a letter to CCI Chairman Ashok Chawla, CERS has enumerated the
“malpractices” adopted by CIL in supplying coal to generating companies.
It requested the Commission to direct CIL to charge for actual quality
and quantity of coal received at power stations, refrains from supplying
stones and rocks which damage pulverizers and increases coal
consumption and desist from adding water in open/close coal wagons to
increase weight and put additional burden on electricity consumers of
India.
Also, CCI should direct electricity generation companies to make payment
to CIL as per quantity and quality of coal received at power stations.
This practice is being followed in case of imported coal received from
Indonesia and Australia.
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